South Korea’s gaming industry is undergoing a seismic shift, with Nexon Games and Krafton Inc. solidifying their dominance while longtime competitors struggle to keep pace with the once-dominant 3N trio—Nexon, NCSoft, and Netmarble— that has dissolved, giving way to a fresh leadership structure driven by record-breaking revenues.

South Korean gaming industry became the first domestic sector to surpass 4 trillion won ($2.78 billion) in revenue in 2024, marking a 5 percent year-over-year growth. Nexon Games’ popular franchises, including Dungeon & Fighter, MapleStory, and FC, drive success. Looking ahead, Nexon Games plans to sustain momentum with the highly anticipated releases of The First Berserker: Khazan, Mabinogi Mobile, Vindictus: Defying Fate, and The Kingdom of the Winds 2.

Krafton Inc., now Korea’s most profitable gaming company, recorded 2.71 trillion won in revenue, a staggering 41.8 percent increase from the previous year. With PUBG: Battlegrounds maintaining strong player engagement even eight years post-launch, the company has entered the 1 trillion won operating profit club. Further strengthening its position, Krafton is allocating 1.5 trillion won over the next five years to new game development, ensuring sustained growth.

NCSoft and Netmarble Struggle to Keep Up

In stark contrast, NCSoft reported its first-ever annual loss since its founding in 1997. Revenue declined 11.3 percent, dropping to 1.57 trillion while operating losses hit 109.2 billion won. The company cited voluntary resignation costs as a key reason for the downturn. Similarly, Netmarble struggled to reclaim its former dominance, with revenue reaching 2.66 trillion won and net profit at a modest 6.3 billion won—a significant decline from its peak.

South Korean gaming industry’s global expansion has played a crucial role in industry dominance. Dungeon & Fighter Mobile, launched in China in 2024, generated 1.52 trillion won ($1.06 billion) in revenue within seven months. Meanwhile, Krafton has capitalized on the booming Indian gaming market.

PUBG Mobile India (BGMI) has surpassed 300 million downloads, generating $200 million in revenue last year. Krafton has invested in localized content, Bollywood collaborations, and large-scale esports tournaments to further solidify its presence.

South Korean Gaming Industry, Future Innovations and Investments

Krafton Inc. is pushing boundaries with AI-powered Co-Playable Characters (CPC), designed to enhance engagement in PUBG and upcoming life simulation games. These characters will revolutionize interactive gaming by offering personalized player experiences. Conversely, Nexon continues to refine its diverse game portfolio, ensuring its foothold in multiple genres.

The South Korean gaming industry is rapidly evolving. Companies are making strategic adjustments, from restructuring workforces to prioritizing overseas markets and investing in groundbreaking innovations. As new game releases approach and industry players adapt, the future of gaming in South Korea promises continued excitement and transformation.

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